PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION ASSOCIATIONS WITH GOVERNMENT-SPONSORED ENTERPRISES.

SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION ASSOCIATIONS WITH GOVERNMENT-SPONSORED ENTERPRISES. (a) Credit Unions.— Section 201 of the Federal Credit Union Act (12 U.S.C. 1781) is amended by adding at the end the following new subsection: 110 STAT. 3009–479 “(e) Prohibition on Certain Associations.— “(1) In general.— No insured credit union may be sponsored by or accept financial support, directly or indirectly, from any Government-sponsored enterprise, if the credit union includes the customers of the Government-sponsored enterprise in the field of membership of the credit union. “(2) Routine business financing.— Paragraph (1) shall not apply with respect to advances or other forms of financial assistance generally provided by a Government-sponsored enterprise in the ordinary course of business of the enterprise. “(3) Government-sponsored enterprise defined.— For purposes of this subsection, the term ‘Government-sponsored enterprise’ has the meaning given to such term in section 1404(e)(1)(A) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. “(4) Employee credit union.— No provision of this subsection shall be construed as prohibiting any employee of a Government-sponsored enterprise from becoming a member of a credit union whose field of membership is the employees of such enterprise.”. (b) Banks and Savings Associations.— Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection: “(s) Prohibition on Certain Affiliations.— “(1) In general.— No depository institution may be an affiliate of, be sponsored by, or accept financial support, directly or indirectly, from any Government-sponsored enterprise. “(2) Exception for members of a federal home loan bank.— Paragraph (1) shall not apply with respect to the membership of a depository institution in a Federal home loan bank. “(3) Routine business financing.— Paragraph (1) shall not apply with respect to advances or other forms of financial assistance provided by a Government-sponsored enterprise pursuant to the statutes governing such enterprise. “(4) Government-sponsored enterprise defined.— For purposes of this subsection, the term ‘Government-sponsored enterprise’ has the meaning given to such term in section 1404(e)(1)(A) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.”. (c) Effective Date.— The amendments made by this section shall apply on and after January 1, 1996.